The bankrupt city of Detroit has forked over a whopping $12.8 million to high-powered lawyers and consultants as it attempts to dig itself out of a Chapter 9 default.
But that figure pales in comparison to what the final tab for bankruptcy-related expenses could look like for the city.
Jim McTevia, a turnaround management consultant, told The Detroit News the cost could “easily” pass the $250 million mark.
The News said that figure is enough to pay 2½ years of benefits to more than 166 retirees who are now fighting proposed pension cuts.
“This is the largest municipal insolvency in the history of the United States, so I am not at all surprised at these kinds of fees,” McTevia told the newspaper.
Eleven firms are now working on Detroit’s bankruptcy problems.
After years of decline, the Motor City filed the largest municipal bankruptcy case in the nation’s history on July 18.